Page 103 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] IN RE : KARNATAKA STATE ELECTRONICS DEVELOPMENT CORPORATION LTD. 429
ply of LED lights, fixtures & other equipment, their installation, commission-
ing, operation & maintenance, etc. - Impugned supplies of goods and services
being in conjunction with each other in the ordinary course of business, the
impugned transaction satisfies the ingredient of composite supply, as defined
under Section 2(30) of Central Goods and Services Tax Act, 2017 - Predominant
and principal factor is to supply and instal LED street lights, i.e., supply of
goods and supply of service is incidental/ancillary to such supply of goods -
Rate of tax applicable on this transaction is 12% (CGST-6% & SGST-6%), in
terms of Sl. No. 226 of Schedule-II to Notification No. 1/2017-C.T. (Rate), as
amended - Benefit of exemption under Entry 3 or 3A of Notification No.
12/2017-C.T. (Rate), as amended, not available, impugned supply being not
that of pure services but supply of goods. [paras 10, 11, 12, 13, 15, 19]
Time of supply - Applicant need to supply the LED Street Lights, dur-
ing the entire contract period as and when it is required and hence the im-
pugned supply becomes continuous supply of goods - Therefore, the value of
the goods in the impugned composite supply can’t be determined till the com-
pletion of the contract period - Consideration received on monthly basis,
throughout the contract period, i.e., 7 years, on energy savings and value of
such invoice is equal to 90% of the energy savings - Time of supply of goods in
terms of Section 12(2)(a) of Central Goods and Services Tax Act, 2017 is the
date of issue of invoice by supplier and the consideration is equal to the value
of the invoice, the GST rate being 12% - Sections 2(33) and 31 of Central Goods
and Services Tax Act, 2017. [paras 15, 18, 19]
Ruling partly in favour of assessee
REPRESENTED BY : Shri Rishabh Singhvi, C.A., M/s. R. Singhvi &
Associates, Authorised Representative, for the
Assessee.
[Order]. - M/s. Karnataka State Electronics Development Corporation
Limited, (called as the ‘Applicant’ hereinafter), 2nd Floor, TTMC A Block, BMTC
Complex, K.H. Road, Shanthinagar, Bengaluru-560027, Karnataka., having
GSTIN Number 29AABCK6661P1ZT, have filed an application for Advance Rul-
ing under Section 97 of CGST Act, 2017 & KGST Act, 2017 read with Rule 104 of
CGST Rules, 2017 & KGST Rules, 2017, in Form GST ARA-01 discharging the fee
of Rs. 5,000/- each under the CGST Act and the KGST Act.
2. The applicant (KEONICS), a Karnataka State Government Entity, is
engaged into providing street lighting services, under the Energy Performance
Contract (ESCO contract) to the Thane Municipal Corporation (TMC), Thane for
a period of 7 years. The ESCO contract is on shared saving model and is to re-
duce the overall consumption of electricity in street lighting.
3. The Applicant has to operate and maintain 12,000 street lighting fix-
tures & respective feeder panels i.e. installation of LED fixtures, smart electric
panels for automation, metering & comprehensive maintenance. The role of the
applicant is as under :
(a) Removal of the existing street lights and handing over the same to
TMC.
(b) Installation of LED street lights on existing street light poles.
(c) Installation of new smart feeder electrical panels compatible with
LED fixtures at its own cost.

GST LAW TIMES  23rd April 2020  223